Record Keeping

FOR A SMALL BUSINESS

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Welcome

1. Agenda

2. Ground Rules

3. Introductions

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Objectives

• Explain the concept of record keeping and its importance to small businesses

• Identify record keeping practices, rules, and tools commonly available to small businesses

• Explain how record keeping practices, rules and tools work

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Objectives

• Identify benefits a small business derives from proper record keeping

• Explain record keeping basics for a small business

• Identify software products available for small business record keeping

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What Do You Know?

What do you know or want to learn about record keeping?

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Introduction

Record keeping important for small businesses

• Sole proprietor • Partnership • Corporation

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What is Record Keeping?

• Orderly and disciplined practice of storing business records

• Ranges from simple (manila folder) to complex (online electronic filing)

• Provides fast retrieval of records • Updated on a on-going basis

Remember – Keep good records, both business and personal

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Why is Record Keeping Important? • Business Operations

• Tracking details • Planning

• Legal • Contracts • Licenses and permits • Payroll and personnel

• Federal, State, and Local Taxes

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• Customer records • Sales records • Correspondence • Inventory

Business Operations, Tracking Details

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Discussion Point #1: Your Record Keeping Discuss your business record keeping practices.

1. Identify detail records you already keep. 2. Identify planning records you already keep. 3. Identify legal records you already keep. 4. Identify tax records you already keep.

5. Think more about your record-keeping.

• Are there records you don’t need to keep? Why not?

• Did we miss any records that you currently keep?

• Are there records that need to be added to the list?

• What area of record-keeping needs your attention?

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Record Retention Examples (Years)

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Record Keeping Tools

• Simple “paper tools” • “Tickler” system • Computer systems • Cloud computing

• Accounting • File hosting

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Simple “Paper Tools”

• File folder • Hanging folder • Cabinet storage • Accordion folder

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“Tickler” System

• Use a tickler system to remind you of upcoming events such as: • Quarterly taxes • License renewals • Insurance reviews and

renewals • Upcoming bills • Call-backs

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Computer Systems

• In addition to paper tools • Takes less space than paper • Faster and easier – Internet transmission • Many businesses and government

agencies allow use of Internet • Learn and grow into computer systems

over time • Be sure to BACK UP files daily

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Cloud Computing

Use the Internet to store, manage, and process data (vs. your own personal computer).

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Cloud Computing, Accounting

• Offered by accounting software companies

• No need to buy software upgrades

• No loss of data when computer crashes

• Access data from anywhere

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Cloud Computing, File Hosting

• Share with colleagues or clients

• Share large files • No loss of files when

computer crashes • Accessible from

anywhere • Free and fee-based

options

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AND OR

Business Software

• Evaluate business needs • Many software products available

• Spreadsheets • Email • Accounting

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Business Software, Evaluate Business Needs

• Inventory tracking? • Manufacturing • E-commerce? • Multiple users? • Industry specialization? • Online options? • Anything else?

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Business Software, Email

• Communicate with clients, employees, suppliers, vendors, contractors, etc.

• Use “local” computer or webmail

• Keep good records by creating email filing system

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Business Software, Spreadsheets

• Track information such as clients, inventory, sales, employee time sheets, etc.

• Matrix of rows and columns

• Frequently used for financial “what-if” scenarios

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Better organization

Inexpensive

Faster calculations

Reduced errors ACCOUNTING

SOFTWARE

Business Software, Accounting • Track business financial records such as

sales, expenses, inventory, and assets • Many advantages

• Reduced errors • Faster • Inexpensive • Better organization

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Discussion Point #2: Accounting System Take some time to think about your accounting system.

• Describe it. • How might it be improved? • What specific improvements are you

thinking about?

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Business Software Training • Tutorials and free trials • Online software training and webinars • YouTube • SBA Resource Partners – SCORE,

Small Business Development Centers, Women’s Business Centers, US Export Assistance Centers, Veterans Business Outreach Centers

• Community Colleges • Accountants • Bookkeepers and Consultants

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Now

Refine as business grows

Start now with something that works

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Key Points to Remember

• Use record keeping tools that work for your business type, size, and complexity

• Evaluate your business needs before purchasing business software

• Again – START NOW

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Summary

• What final questions do you have?

• What have you learned?

• How would you evaluate the training?

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Conclusion You learned about:

• What record keeping is and how it’s important • Record keeping basics – practices, rules, and

tools • Which records to keep – tracking, planning,

legal, and taxes • Benefits of record keeping • Business software available for record keeping • Business software training